Don’t Register With Eskom or Municipalities – YET

The Organisation Undoing Tax Abuse (OUTA) believes recent threats by Eskom and certain municipalities to fine or disconnect electricity supply for failing to register their small-scale embedded generation (SSEG) systems (Solar PV) are impractical, irrational and unfair. We have also notice significant amendments to earlier supposed requirements and deadlines by the authorities, which is generating more uncertainty and ambiguity on their demands and threats to households with solar installations.

OUTA has received a surge of queries and concerns from the public, following threatening communications from Eskom and certain municipalities, including the City of Johannesburg, demanding registration or prior approval for SSEG installations under 100 kW, which do not feed electricity back into the grid.

This has created unnecessary uncertainty, confusion and anxiety for households, installation companies and other industry stakeholders.

“What is at stake here, are the rights of citizens who have gone to significant personal expense to protect themselves against years of escalating electricity prices and an unreliable power supply,” says OUTA CEO Wayne Duvenage. “People have installed gas appliances, solar power systems, generators, inverters and other alternatives, in direct response to Eskom and Government’s calls – as well as incentives – to reduce electricity demand.

The uncertainty also has knock-on effects, leading to solar installation projects being delayed, with some solar installation financiers, insurers and installers being unsure how to proceed.

OUTA cautions finance houses and insurers against refusing to fund or insure residential solar installations based on this confusion and frequent amendments as to what is required, by Eskom and Municipalities. Such decisions are short-sighted and have the effect of penalising responsible consumers. When encountering resistance, OUTA encourages homeowners to seek alternative finance and insurance providers who are willing to support compliant and safe installations, so long as these installations have proof of technical and safety compliance in the form of a valid Certificate of Compliance (CoC) by a registered and qualified electrician.

“These developments echo similar irrationality and administrative challenges we saw unfolding during the e-toll debacle,” says Duvenage. “Government often makes the mistake of believing that certain processes and desired administrative functions can magically be introduced through threats and administratively cumbersome regulations or new laws, when in fact it is the practicality, rationality and public acceptance that are the most important ingredients for successful implementation. Aside from clear indications that Eskom and several municipalities plans in this regard are lacking in public acceptance and feasible application thereof, it appears there may also be significant legal stumbling blocks which OUTA’s team is finalising with its legal counsel.”

OUTA’s position is clear. What a homeowner does behind the meter on their own property – to reduce reliance on an unstable and expensive electricity supplier – is of no real business to the supplier, provided the installation is safe, compliant in terms of national legislation, and the customer continues to pay for electricity in line with their contract with the distributor.” says Wayne Duvenage. “This means that if your solar installation has a valid CoC, which addresses the safety concerns that are often cited by Eskom and Municipalities, you are doing what is required of you.”

In terms of the Occupational Health & Safety Act, the Electrical Installation Regulations, and the mandatory national standard SANS 10142-1, a residential electrical installation, including solar PV electrical must have a valid CoC issued by a duly qualified and accredited installation electrician / electrical contractor that is registered with the Department of Labour & Employment, before the system is commissioned.

OUTA believes the recent intimidating letters sent to consumers and public announcements by Eskom and some municipalities, regarding the need to register and/or obtain permission for solar system installations, amounts to coercive tactics designed to create fear and panic and to force unwarranted so called “compliance” requirements. We have however noticed a toning down of Eskom’s stance of disconnections and fines, reflected in recent media reports over the past few days, which suggests more uncertainty and a realisation that Eskom and municipal plans in this regard are not in sync with the powers presumably attributed to them.

OUTA will continue engaging with various stakeholders, to ensure that rationality prevails and to protect electricity users from unlawful and unreasonable administrative overreach.